Purpose – The purpose of this paper is to examine the impact of e-business implementation (in terms of internal integration and external diffusion) on organizational performance through the mediating effects of differentiation, enterprise agility, customer relationship development and partner attraction. Design/methodology/approach – A survey of franchisors was conducted across the USA and Spain. Before running the model, the paper tests for measurement invariance across the two country samples. The paper uses structural equation modeling to test the conceptual model. Findings – The results of the measurement invariance suggest that all the constructs supported this characteristic, except for internal integration. External diffusion leads to differentiation, enterprise agility, relationship development and partner attraction for American and Spanish firms. However, internal integration has no impact on any outcome in the USA while, for Spanish firms, it has a positive and direct effect on economic performance. The full mediating role of non-financial performance between external diffusion and organizational performance depends on the country analyzed. While differentiation and relationship development fully mediate this relationship in the US sample, in the Spanish sample, the advantages of external diffusion are transferred through differentiation, enterprise agility and partner attraction. Practical implications –The paper suggests that franchise firms should not focus on the direct effect of e-business implementation on performance. Instead, franchisors should consider that its effect on performance is achieved through greater differentiation, relationship development, enterprise agility and partner attraction. So, the paper suggests that franchisors should think about the long-term effects of the advantages obtained from implementing e-business. Originality/value – This study contributes to IS research by identifying the link between internal integration and external diffusion and organizational performance through the examination of the mediating role of non-financial performance measures in two countries. Compared with previous research, the paper first analyzes measurement invariance across countries to provide unbiased results.

Purpose -The purpose of this paper is to highlight the efforts of a Spanish SME, Bodega Pirineos, to combine technology and a customized strategy in communication management with its suppliers. This is extremely important because of the necessity to adapt its supply system to the characteristics of its micro-suppliers, which are key trade partners of the firm. Design/methodology/approach -The approach used was a case study. Findings -The case study suggests how firms must adapt their supply relationships both with suppliers and with the environment. The paper shows that technology is not always enough. Firms need to understand their partners and to communicate with them. Research limitations/implications -This paper is based on a specific case study. Therefore, its recommendations may be successfully applied to other products in different settings and in other sectors. Practical implications -The ideas contained in this case study can help supply chain managers to reflect on the necessity of understanding their strategic suppliers. Communication between a company and its suppliers is important for improving the efficiency of its supplying management. A proper management of business-to-business communication flow may guarantee the achievement of the necessary inputs and the meeting of the required standards for its products. Understanding why and how Bodega Pirineos customizes communications flows with its micro-suppliers will help both managers and researchers to reflect on the idea that communication needs comprehension more than technological intensity. Originality/value -The special characteristics of small and medium-sized enterprises (SMEs) seem to recommend strategies adapted to their economic and human resources. The paper highlights a successful strategy based on the SME context. It includes both the firm's and their most representative suppliers' perspective.

PurposeThere are two purposes of this paper: first, to analyze the effect of size and other organizational factors (IT knowledge, IT external support and the level of employees' education) on the use of e‐business; and second, to identify similarities and differences among these factors in micro, small, medium‐sized and large enterprises.Design/methodology/approachThe proposed model is empirically tested using data from the Sectorial e‐Business W@tch survey. A logit estimation for the whole sample and for each type of firm size has been implemented on the use of e‐business.FindingsThe study finds positive and significant effects of all the organizational factors on the intensity of e‐business use. When analyzing the effect of size, it was found that medium‐sized and large firms are more likely to use e‐business more intensively. Although medium‐sized and large firms are similar, some differences have been found between small and medium‐sized firms. Only small firms use IT outsourcing as a key factor to use e‐business.Research limitations/implicationsThis study is based on a cross‐sectional data set. Longitudinal research would be needed for comparing results over time. Future studies could focus on the use of each type of e‐business technology, instead of a global measure of e‐business use. Future research could also analyze the differences of e‐business adoption rates among countries.Practical implicationsThe paper concludes that small and micro firms are less likely to conduct e‐business than medium‐sized and large firms. An important influence on the use of e‐business is workforce education, implying that training could substitute hiring IT employees. Outsourcing IT activities is a suitable strategy only for small firms.Originality/valueThe paper contributes to the literature on e‐business with new evidence of the importance of size and human capital. Additionally, an analysis for each firm size has been done, which allows comparison of results.

Purpose – The purpose of this paper is to demonstrate how signaling support services and contractual arrangements that create value for incumbent franchisees can help to create value for the whole network by attracting prospective franchisees. Design/methodology/approach – Using data from Bond's Franchising Report the study analyses franchisors operating between 1994 and 2008 via a Generalized Method of Moments (GMM) model for an unbalanced panel of 2,474 franchisors. Findings – Training, financial assistance, sub-franchising and restrictions against passive ownership, and the use of area development agreements are found to be valuable for prospective franchisees. Experience and the number of company-owned and franchised units also attract prospective franchisees. Research limitations/implications – Our findings imply that not all value-creating services and contractual arrangements are interpreted in the same way by prospective franchisees. Franchisors should offer training and financial assistance to new franchisees in the early stages of a franchise. They should also allow sub-franchising but restrict passive ownership and offer the possibility for area development agreements as contractual arrangements to appeal to new franchisees. Franchisors should focus not only on expansion, but should view the chain in a holistic manner by sustaining and growing both franchised and company-owned units. Originality/value – The findings contribute to the franchising literature by providing new evidence on how offering and signaling some contractual arrangements and support services can help franchisors create value for incumbent franchisees and can attract new franchisees. Our research shows that value in franchising is created differently depending on whether the franchisees are incumbent or prospective.

Purpose -The purpose of this paper is to contribute to the discussion related to the antecedents of the extent of e-business use and the effect of this level on changing strategy, management and marketing. Design/methodology/approach -The authors use data from 691 retailers in seven European countries. Information is obtained from the survey of the "e-Business W@tch". Data analysis was performed using biprobit estimation. The sample is divided into two groups depending on the level of e-commerce of the countries. Findings -Results suggest that the e-business use implies changes in the firm's strategy, management and marketing in all the countries studied. Differences between the two groups of countries are minimal. The main factors that influence the level of e-business use are IT expertise and perceived benefits.Research limitations/implications -The limitations are related to the nature of the data and concretely the main limitation lies in the consequences construct. The data provided are very general and it would be useful to specify what kind of change is generated. Practical implications -Antecedents of the level of use are similar for all the countries, so there might be additional factors that explain why, in some countries, retailers have adopted a different level of e-business. Managers have to take into account that the adoption and use of a higher level of e-business requires changes in all the functional areas. The decision of adopting and using e-business should be taken seriously. Originality/value -Most research has focused on analyzing the antecedents of e-business use in a single country. However, this paper presents some new evidence on the factors that influence the extent of e-business use for two groups of countries. Furthermore, previous research has suggested that changes might be necessary within the firm due to the e-business use but there is little empirical evidence on the internal impact of e-business use. This paper provides a first approximation to the general areas in which managers had to made changes.